[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
May 25, 2020
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for April 2020
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
As announced in “Notice concerning Conclusion of Memorandum of Understanding to Amend
the Fixed-term Building Lease and Property Management Agreement with Major Tenants” dated
May 11, 2020, INV entered into a Memorandum of Understanding (“MOU”) to amend each fixedterm building lease and property management agreement for domestic hotels owned by INV
and operated by INV's main tenant, MyStays Hotel Management Co., Ltd. and its affiliates(“MHM Group”). Under the MOU, INV will bear the property management costs from March toJune 2020 and increase the amount of the management fees payable to the MHM Group, but
at present, details of the amount to be paid by INV have not been concretely agreed. Therefore,
The NOI for April 2020 of domestic hotels operated by the MHM Group has not been determined
and the NOI for March 2020 will be also revised retroactively. As a result, the overall Portfolio
NOI1,2 for the June 2020 fiscal period (January to June) is not yet determined as well and thedisclosure is omitted. For details on the MOU, please refer to the above press release.
The performance for April 2020 stems primarily from the pronounced impact of the coronavirus(COVID-19) pandemic that has caused a significant reduction in demand for hotels due to the
sharp decline in domestic and global travel. JNTO reported that inbound visitors declined by
99.9% in April (year-over-year). Domestically, the Government enacted State of Emergency
has caused widespread voluntary restraints significantly reducing business trips and leisuretravel. Prime Minister Abe has subsequently extended the nationwide State of Emergency
through the end of May 2020.
This English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

1

In response to the significant reduction in demand, MyStays, the main hotel operator of INV, istaking aggressive steps to reduce hotel operating expenses by reviewing all operations,
including temporary hotel closures and the suspension of non-essential capital expenditures.
MyStays has taken government subsidies for furloughed employees, is cutting payments toservice providers, significantly reducing marketing expenses, utilities, and other items. On therevenue side, MyStays has been pursuing corporate demand from companies seeking help toquarantine their employees returning to Japan, individual self-quarantine for returning
passengers, and specific programs to salvage as much revenue as possible such as a day-use
of hotel rooms for people seeking space to work remotely.
Some of the hotels owned by INV have been temporarily closed as described in Appendix 1.
The State of Emergency has been lifted by the national government for 42 of 47 prefectures on
May 21. However, since the declaration remains in effect for areas such as the Tokyo
metropolitan area and Hokkaido, where many INV's hotels are located, voluntary restraints oncross-prefecture travel and non-essential movement are still expected to continue. Therefore,
demand for hotels will continue to be sluggish for the time being, and we are forecasting RevPAR
in May 2020 to decrease approximately 90% year-over-year.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio3 performance for the month of April 2020 has shown year- overyear declines in Occupancy of 60.8pt, ADR of 46.2%, and RevPAR of 83.4%, due to thereasons mentioned above. The cumulative NOI2 for the June 2020 fiscal period (January
to June) is not yet determined as above.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio3.
Area

Occupancy Rate4

ADR (JPY)5

RevPAR (JPY)6Tokyo 23 Wards

37.8%

5,837

2,204

Greater Tokyo (ex. Tokyo 23 Wards)

39.4%

7,482

2,946

Chubu

21.7%

5,310

1,154

Kansai

18.2%

4,570

831

Kyushu

23.2%

4,873

1,133

Hokkaido

8.0%

6,080

483

Other domestic

19.4%

7,949

1,542

Total

27.0%

6,201

1,675

This English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2(2) Cayman Hotels
In reaction to the worldwide spread of COVID-19, the Cayman Islands government closed
the Owen Roberts International Airport in Grand Cayman on Sunday March 22, 2020 at
11:59 PM. Accordingly, the Cayman Hotels (the Westin Grand Cayman Seven Mile Beach& Spa and Sunshine Suites Resort) have been closed since late March.
The cumulative NOI2 for the June 2020 fiscal period (January to June) decreased by 48.1%
compared to the same period last year.
The closure period of the airport, which was initially set at three weeks until Sunday April 12,
2020, was extended to Monday, August 31, and the Cayman Hotels are scheduled to remainclosed for the time being.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of April 2020 was 96.2%, ayear-over-year increase of 0.4pt. The rent increase program continues to show positive
results as the average in-place rent per tsubo as of the end of April 2020 increased by 0.2%
year-over-year. NOI8 for the residential portfolio in April 2020 increased by 0.0% year-overyear and increased by 3.0% year-over-year on a cumulative basis for the June 2020 fiscal
period (January to June).
Rents, compared with those based on the immediately preceding leases, increased by 0.6%
for new leases, 1.6% for renewal leases, and 1.2% for new and renewal leases combined
for the June 2020 fiscal period. INV achieved a rent increase on 47.3% of lease contract
renewals for the June 2020 fiscal period. The retention rate for the existing tenants
continues to be high at 81.3% for the June 2020 fiscal period.
4. Performance(1) 75 Domestic Hotel Properties3
Cumulative (Jan.-June)
2019
(C－D)
(D)

Apr.
2020
(A)

Apr.
2019
(B)

(A－B)

YoY
ChangeOccupancy Rate4

27.0%

87.8%

-60.8pt-69.2%

56.8%

86.5%

-29.7pt-34.3%ADR (JPY)5

6,201

11,530-5,330-46.2%

7,806

10,118-2,312-22.9%

RevPAR (JPY)6
Gross Revenue(JPY million)9

1,675

10,122-8,446-83.4%

4,433

8,747

-4,314-49.3%

1,024

6,246

-5,221-83.6%

11,793

22,255-10,461-47.0%

2020
(C)

YoY
ChangeThis English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3(2) Cayman Hotels
Apr.
2020
(A)

Apr.
2019
(B)

(A－B)

YoY
Change

0.0%

90.2%

-90.2pt

ADR (USD)50

430

RevPAR (USD)6
Gross Revenue(USD thousand)0124

Occupancy Rate4

Cumulative (Jan.-June)
2020
(C)

2019
(D)

(C－D)

YoY
Change-100.0%

56.5%

91.3%

-34.8pt-38.1%-430-100.0%

487

468

+19

+4.1%

388

-388

-100.0%

275

427

-152

-35.5%

9,688-9,564-98.7%

26,63840,810-14,171-34.7%(A－B)

YoY
ChangeCumulative (Jan.-June)
2019
(C－D)
(D)

YoY
Change(3) 60 Residential Properties7
Apr.
2020
(A)

Apr.
2019
(B)

96.2%

95.8%

+0.4pt

+0.4%

96.5%

96.1%

+0.4pt

+0.4%

9,140

9,120

+20

+0.2%

9,086

9,032

+54

+0.6%

Occupancy Rate
Rent per Tsubo
(JPY)

2020
(C)

5. Portfolio NOI
2019 Simulated

NOI1,2 (JPY million)

NOI10
Apr.
(JPY
million)

Ratio

2020

Cumulative (Jan.-June)
YoY

2019

Change

2020

YoY

2019

ChangeTokyo 23 Wards

5,980

19.4%

-

-

-

-

-

-

Greater Tokyo (ex. Tokyo 23 Wards)

4,094

13.3%

-

-

-

-

-

-

Greater Tokyo – Subtotal

10,075

32.7%

-

-

-

-

-

-

Chubu

2,791

9.1%

-

-

-

-

-

-

Kansai

1,775

5.8%

-

-

-

-

-

-

Kyushu

2,315

7.5%

-

-

-

-

-

-

Hokkaido

3,442

11.2%

-

-

-

-

-

-

Other domestic

2,700

8.8%

-

-

-

-

-

-

Domestic Hotel – Subtotal

23,100

75.0%

-

-

-

-

-

-

Residential

3,281

10.6%

273

273

+0.0%

1,105

1,073

+3.0%

Commercial

368

1.2%

30

30

+0.5%

121

122

-0.6%

Domestic Asset – Subtotal

26,750

86.8%

-

-

-

-

-

-

Overseas

4,070

13.2%

-157

477

-

1,108

2,136

-48.1%

Total

30,820100.0%

-

-

-

-

-

-

(Note 1) Based on all properties held as of the end of April 2020, excluding 9 hotels with fixed-rent lease agreements. 9 hotels
with fixed-rent lease agreements are D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36
Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki,
D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu
REI Hotel. NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton
This English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 to
September 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months from theend of each semi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on a monthly
basis, the amount of dividend INV receives from the TMK for each month is a simulated figure, which is calculated bydeducting (i) simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing thebudget of the TMK for the fiscal period that includes the relevant month by the number of months in such fiscal period)
from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which is three months before
the target month for this performance disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in
the TMK (49.0%). The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110, which isthe exchange rate fixed by the acquisition of puts and selling calls, covering approximately 85% of expected cash flow
through December 31, 2020. Furthermore, NOI is provisional figure and subject to change when it is determined atfinancial closing; hereinafter the same.
(Note 2) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and are
subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust
them due to the timing even if the figures are based on actual performance; hereinafter the same.
(Note 3) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of April 2020, 9 hotels with fixed-rent leaseagreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the month which isthree months prior to the target month for this performance disclosure as INV will receive the dividend from the TMK within
three months of each fiscal period end for the TMK as described above. However, in consideration of seasonality, figuresother than NOI in the table above are based on the figures for April 2020; hereinafter the same.
(Note 4) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 5) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 6) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate and
ADR.
(Note 7) Based on 60 properties held by INV as of the end of April 2020.
(Note 8) NOI excludes one-off insurance-related revenues and expenses.
(Note 9) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardlessof INV’s ownership ratio of the preferred equity interest in the TMK (49.0%).
(Note 10) Based on 148 properties owned by INV as of the end of April 2020, assuming all properties were owned since the beginningof 2019. Includes the dividend from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay Hotel,
assuming this dividend contributed throughout the June 2019 fiscal period and the December 2019 fiscal period of INV.
The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110, which is the exchange rate fixedby the acquisition of puts and selling calls, covering approximately 85% of expected cash flow through December 31, 2020.
(Note 11) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen and
Gross Revenue is rounded down to the nearest million yen.
(Note 12) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of total
leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per tsubo
is calculated by dividing the sum of the total rental revenue including common area charges for each month by the sum of
total leased area (tsubo) at the end of each month.
(Note 13) For the details of performance for each hotel asset, please visit INV’s website:
https://www.invincible-inv.co.jp/en/portfolio/hotel.html

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

5

(Appendix 1)<Temporary Closure Status of Hotels Owned by INV>
Property
Number

Property Name

Location

Closed Date

End ofClosing
Period (Note)

Status of Operation

D53

Hotel MyStays Sapporo
Station

Sapporo-shi,
Hokkaido

March 18

June 12

Consolidating operations with
Hotel
MyStays
SapporoAspen

D68

Hotel MyStays Kanazawa
CastleKanazawa-shi,Ishikawa

April 13

June 14

Consolidating operations with
Hotel
MyStaysPremierKanazawa

D71

Hotel Nord Otaru

Otaru-shi,
Hokkaido

March 18

June 12

Consolidating operations with
Hotel Sonia Otaru

D75

Hotel MyStays Sapporo
Susukino

Sapporo-shi,
Hokkaido

March 18

June 12

D76

Hotel Mystays Sapporo
Nakajima Park

Sapporo-shi,
Hokkaido

March 18

June 12

D77

Hotel MyStays Sapporo
Nakajima Park Annex

Sapporo-shi,
Hokkaido

March 6

June 12

D3

Hotel MyStays Kyoto-Shijo

Kyoto-shi, Kyoto

May 1

June 12

D44

Hotel Epinard Nasu

Nasu-gun,Tochigi

April 28

May 31

D48

Takamatsu Tokyu REI Hotel

Takamatsu-shi,
KagawaApril 25

May 31

D65

Art Hotel Ishigakijima

Ishigaki‐shi,Okinawa

April 20

May 31

D66

Hotel MyStays Fuji Onsen
ResortFujiyoshida-shi,
Yamanashi

May 1

June 11

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

Taito-ku,
Tokyo

March 8June 30-

Sheraton Grande Tokyo Bay
Hotel

Urayasu-shi,
Chiba

April 28

May 31

D200

Westin Grand Cayman
Seven Mile Beach Resort &Spa

Cayman Islands

March 22

August 31

D201

Sunshine Suites Resort

Cayman Islands

March 22

August 31

Consolidating operations with
Hotel
MyStaysPremier
Sapporo Park

Closing(Note) Expected end of Closing Period as of today, which could change.

This English language notice is a translation of the Japanese-language notice released on May 25, 2020 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

6